The index's heavyweight energy group retreated 0.4 percent, with oil prices falling as investors unwound bets on higher prices because of concerns that higher U.S. crude output could hamper an OPEC-led production cut deal.

The materials group, which includes precious and base metals miners and fertilizer companies, added 0.8 percent.

Canada's finance minister will give an update on the deficit when he presents the federal budget on Wednesday, hoping to flesh out plans to spend the way to growth without drawing the wrath of debt rating agencies and businesses struggling to compete.

Canadian wholesale trade in January unexpectedly soared by 3.3 percent, its biggest monthly advance in more than seven years, on stronger sales of motor vehicles and parts, Statistics Canada data indicated on Monday. (1 Canadian dollar = $0.7487) (Reporting by Alastair Sharp; Editing by Meredith Mazzilli)